Core earnings fell less than expected — Emperor International's core profit fell 39% year over year, but was better than our expectations. The decline in core earnings was mainly due to a lack of new sales items to be purchased in 2011. The board of directors proposed to pay a final interest of 5.2 cents per share, an increase of 30% year-on-year, and a full-year dividend of 10 cents, an increase of 13.6% year-on-year. Weekly interest rate 6.1%.

2012 is the harvest period for property sales - We expect profit before tax from property sales to rise to $981 million due to the sale of Victoria One and The Java, and the business was at a loss during the same period in 2011. We believe property sales will be the Group's main profit growth engine this year.

Rental income is growing steadily — with the Group's new purchase of 507 Lockhart Road and 76 Perthford Street, plus 22-24 Russell Street, which will contribute revenue throughout the year, even though the Group sold King's International Plaza and 66 Jardine's Street earlier, its profit before tax is expected to increase by 13% in 2012. The opening of The Pulse will also cause rental profit before tax to increase 27% year-on-year in 2013.

Raise the 2012 profit forecast and maintain the purchase — we sharply raised Emperor International's core profit for 2012 to $1,267 million to reflect the impact that Victoria One and The Java will receive early accounts in 2012 (earlier the Group anticipated completion in 2013). Since there is still room for a 53% increase in current prices, we maintain our buying recommendations.